Liverpool are prepared to build in a performance related bonus to the package, but Starsport understands they do not feel Gerrard warrants two more years on his existing terms.

The stance is likely to put the club at loggerheads with its captain, who is understood to be wanting a new deal that comes close to matching his existing salary.

And it is likely to concern some sections of the supporters who believe Liverpool should be looking after the 34-year-old as reward for his service throughout his career.

Yet with Gerrard's impact in Premier League games slowly dwindling, officials feel they can divert some of his wages elsewhere in the salary structure to continue trying to bring in other world class players.